Stellantis’ 70% Profit Plunge: A Sign of a Company Stalling Out?

It’s been a rough ride for Stellantis in 2024. The automotive giant—home to brands like Jeep, Dodge, Chrysler, Peugeot, and Fiat—just posted a brutal 70% drop in net profits. The numbers are ugly: net revenues fell 17% to €157 billion ($170 billion), while adjusted operating income (AOI) plummeted from €24.3 billion ($26.3 billion) in 2023 to just €8.6 billion ($9.3 billion) this year. Oh, and let’s not forget their industrial free cash flow? Negative €6 billion ($6.5 billion). Yikes.

For a company that boasts a portfolio of once-legendary car brands, this kind of financial nosedive raises some serious questions. Is Stellantis steering itself into a ditch? Or is this just a temporary detour before the company regains control? Let’s break it down.

Consumers Aren’t Buying What Stellantis Is Selling

The biggest red flag? Stellantis isn’t moving enough metal. Shipments dropped by 12%, a loss of 750,000 units, and that’s not just some minor fluctuation—it’s a sign that people aren’t exactly lining up for their cars.

A big part of this issue stems from weak performance in North America, where Stellantis saw major declines due to inventory cuts and model discontinuations. Jeep and Dodge, once dominant forces in the SUV and truck markets, are now playing defense against brands that have evolved faster. Meanwhile, in Europe, Stellantis struggled with production gaps in its small car lineup, further eating into sales.

Consumers seem to be voting with their wallets, and right now, Stellantis isn’t on their shopping list.

Missed the EV Turn?

Remember when Stellantis CEO Carlos Tavares claimed the company would be a major player in electrification? Well, reality hasn’t been so kind.

While competitors like Tesla, Ford, and even General Motors have carved out meaningful chunks of the EV market, Stellantis’ electrification strategy remains half-baked. The company is still playing catch-up, and its transition to electric hasn’t been smooth. In fact, Stellantis took a €1.2 billion ($1.3 billion) impairment on Maserati, citing “slower-than-expected market dynamics and the transition to electrification”—corporate speak for “our EVs aren’t selling as well as we hoped.”

The company did launch 30 new models in 2024 and 2025, but the real question is: are any of them actually compelling enough to bring customers back?

Costs Are Running Rampant

Even if Stellantis could fix its sales problem, its expense sheet is another disaster.

• FX headwinds cost them €3.6 billion ($3.9 billion), with weak currencies in Turkey, Brazil, and Argentina making things worse.
• Industrial costs ballooned by €1.5 billion ($1.6 billion), mostly in North America thanks to higher warranty expenses (never a good sign).
• Restructuring? That cost them another €1.6 billion ($1.7 billion), as the company cut jobs to reduce overhead.
• And then there’s the €800 million ($870 million) hit from the Takata airbag recall, a never-ending headache for automakers.

At this point, Stellantis is bleeding cash from every direction.

Is There a Way Out?

Stellantis isn’t going to disappear overnight, but this kind of financial performance isn’t sustainable. The company’s survival hinges on whether it can actually create vehicles that people want to buy. Right now, it’s relying too much on outdated nameplates, half-hearted EV rollouts, and cost-cutting measures that don’t address the core issue: a lack of brand excitement.

The automotive industry is ruthless. Fall behind, and customers will move on. Stellantis needs to stop coasting on nostalgia and start delivering vehicles that excite modern buyers. Otherwise, this 70% drop in net profit might just be the beginning of a much steeper decline.

Buckle up, Stellantis. It’s going to be a bumpy road ahead.

Disclosure: This does not serve as financial advice. This article is for informational purposes and is not a recommendation to buy or sell any security.

References & Additional Reading:

• Finance.Yahoo.com
• TipRanks.com
• InsiderMonkey.com